4 Jul 2013
EUR/USD hovering over 1.3000
FXstreet.com (Edinburgh) - The EUR/USD keeps the area around the key level at 1.3000 on Thursday, ahead of the ECB monthly gathering due in the European afternoon.
EUR/USD under pressure
The euro would be under pressure as market participants expect the tone of the ECB’s statement and the subsequent press conference by Mario Draghi to be in the dovish side. According to Alvin Pontoh, Strategist at TD Securities, “we don’t see any real scope for shock rate cuts, but we see plenty of scope for Draghi to massage rates lower, even as data over the last month has continued to improve and generally trend better than expected outside of weaker lending data”.
EUR/USD relevant levels
As of writing the pair is now losing 0.07% at 1.3002 and a breakdown of 1.2923 (low Jul.3) would open the door to 1.2859 (weekly cloud top) and then 1.2838 (low May 29). On the upside, resistance levels are located at 1.3055 (MA100d) followed by 1.3078 (high Jul.2) and finally 1.3103 (high Jun.28).
EUR/USD under pressure
The euro would be under pressure as market participants expect the tone of the ECB’s statement and the subsequent press conference by Mario Draghi to be in the dovish side. According to Alvin Pontoh, Strategist at TD Securities, “we don’t see any real scope for shock rate cuts, but we see plenty of scope for Draghi to massage rates lower, even as data over the last month has continued to improve and generally trend better than expected outside of weaker lending data”.
EUR/USD relevant levels
As of writing the pair is now losing 0.07% at 1.3002 and a breakdown of 1.2923 (low Jul.3) would open the door to 1.2859 (weekly cloud top) and then 1.2838 (low May 29). On the upside, resistance levels are located at 1.3055 (MA100d) followed by 1.3078 (high Jul.2) and finally 1.3103 (high Jun.28).